Germany multinational automobile company, BMW, in partnership with Vechain (VET), has released a blockchain based application framed as ‘vehicle digital passport,’ with the aim of eradicating rampant odometer indecency.
Known as VerifyCar app, the solution was unveiled by the IT leader of BMW Group Asia’s, Cihan Albay, at the VeChain Summit 2019 on April 18, 2019 in San Francisco. In line with Vechain’s objective, the application is focused on supply chain management.
“What we tried to do here is to build a digital passport that verifies datasets and allows people to know if what a seller says is really true,” Albay said at the summit.
The application gives users the autonomy to monitor their odometer and maintenance reports against mileage fraud.
Vechain – BMW’s Verifycar App Tackles Germany’s €6 Billion Yearly Loss
Germany has been rated amongst the largest market for used cars in Europe, and BMW is a world renowned automobile company with its headquarter in Munich, Germany.
However, the country’s used car market has longed been battling with mileage rollback issue, with an estimate of 1 out of every 3 cars being subjected to odometer fraud. Furthermore, CARFAX Vehicle History Reports indicated that Germany account for a yearly loss of about 6 Billion Euros through inflation of used cars value.
Although, the country introduced a strict policy through Vehicle Identification Number to ensure transparency, but it seems not matching for the hitch as mileage manipulation in Germany remains a big issue.
Nevertheless, the VerifyCar app, a blockchain based solution with immutable, trustless and manipulation free characteristics, is sure of annulling the incessant mileage fraud if introduced into the country’s used car market.
While confirming the potency of the application and blockchain in general, Albay said BMW has tested the application on internal vehicles, and it is currently shaping means to release the product to the public.
“Blockchain is still a sensitive topic. People in Germany currently don’t know how to react about blockchain when they hear that stored on a blockchain cannot be deleted afterwards. We really need to have a look at our business strategy and how to roll out. But we have proven that it works and we are keen to continue further,” Albay added.
This is coming about a year after the two giant tech companies inked an alliance deal. VerifyCar app is a product of the BMW Startup Garage, a Venture Client unit of the company where future applications and technologies for cars are being developed.